“We plan to launch Nykaa exclusive store by next year”: Reena Chabbra
In an exclusive conversation with Reena Chhabra, CEO, Nykaa (FSN Brands) sheds light on the growth strategy of the company.BY Shipra Srivastava | December 06, 2018 | comments ( 0 ) |
Nykaa is marketplace know for retailing leading beauty brands off late Nykaa is constantly expanding its private label range. Is there shift in strategy and focus is more on to grow Nykaa brand?
No, we intend to be a very strong ecommerce company but we will also grow our own label. Nykaa started as ecommerce market place so we have rich database of discerning customers. There were many consumers who were actively giving us feedback about many products and beauty trends which were available internationally but were not available in India, and there was huge demand for those products. That inspires us to launch our own beauty brand. As of now, we have five-six categories for Nykaa brand which we are expanding constantly.
Apart from this, we are growing at 200-300% every year. In fact, each quarter on quarter growth is more than 100%. So what we have done is, besides selling on e-commerce, we are also selling in our luxe stores along with general trade outlet now we have just entered premium multi brand outlet. We are expanding very fast via this format. We aim to be among the top three cosmetics brands of India.
What is the percentage of Nykaa products as far as your brick and mortar stores are concerned?
The share of Nykaa products is 30-40% that tells how strong the brand has build up.
Recently, Nykaa has bought Huda beauty line to Indian market. What new collaboration we are going to see on similar lines?
Yes, we are in touch with many brands which I cannot name yet.
What kind of retail expansion the company is looking at? Also, is there any plan to open Nykaa exclusive stores?
We already present at more than 1000 touch points including 23 our own stores. We would continue to expand via own channel. Yes, we do have plan to open Nykaa product exclusive physical store. And, we should roll out the same in another year. Simultaneously, we would continue to grow via MBO channel.
Would you look at franchise model for Nykaa exclusive stores?
Initially, the focus is on company exclusive stores only.
Color cosmetic is a very under penetrated category as far as overall beauty and wellness market is concerned. How do you see this segment is evolving?
I think there is a lot of demand coming in this segment with younger generation coming in which is much more evolved in terms of taste and preferences. Millennials follow international trends, they look at global icons. For example, in category such as lipsticks they want seven-eight types of SKUs. It is under penetrated but extremely fast growing.